Key Highlights
- To get a gold loan, pure gold content (not design or appearance) determines the loan value per gram.
- Plain gold chains, bangles, and rings in 22 or 24K fetch the highest per-gram value.
- Studded, antique, and oxidised jewellery get lower valuations because stones and other materials are excluded from the gold weight calculation.
- Shriram Gold Loan offers up to 80%* of your gold's assessed value, with interest rates starting at 10%* p.a.
- Hallmarking is important and properly hallmarked ornaments are faster to process and often valued more confidently.
Gold loan borrowers usually go to a gold loan branch with whatever jewellery is available, not what’s optimal. That's understandable since not everyone knows that the necklace in the locker and the bangles worn to family functions will be valued very differently, even if they look similar in weight.
The question worth asking before you pledge your jewellery: which pieces will get me to the loan amount I need while keeping the most gold out of the pledge?
The answer usually starts with purity.
A ₹60,000 loan taken against 22K bangles versus a ₹60,000 loan taken against 18K studded jewellery means pledging significantly different quantities of gold. The lower-karat path requires you to put more at risk to borrow the same amount.
Why Pure Gold Content and Not Overall Weight Decides Your Loan Amount
When you pledge gold for a loan, the lender doesn't weigh the ornament and apply a rate to the gross figure. They calculate the net gold content — gross weight minus stones, clasps, and any non-gold additions. Then they apply the purity-adjusted value.
This is why a studded necklace weighing 40 grams and a plain chain weighing 30 grams can fetch similar loan amounts. The plain chain has more actual gold per gram. The necklace has diamonds and other elements that contribute to weight but add zero value for loan calculation purposes.
Purity matters even more than weight in this equation. A 22K ornament at 10 grams contains more usable gold than an 18K ornament at 12 grams.
Gold Ornaments That Return the Strongest Loan Value per Gram
Plain gold jewellery (22–24K) Chains, necklaces, bangles, and rings with clean designs and no embedded stones generally sit in the 22–24K range. Their net gold weight is close to their gross weight, which gives them the highest per-gram loan eligibility. If you have plain gold that's properly hallmarked, this is your strongest pledging asset.
Gold bars and biscuits These contain 99.9% pure gold (24K) by design, with no alloy mixing or added materials. They're also heavy, which compounds the per-gram advantage. If you hold investment-grade gold bars, pledging them typically returns the highest absolute loan amounts.
Kundan-style jewellery Kundan work uses a setting technique that involves 24K pure gold foil behind stones. The gold content is high relative to other traditional jewellery styles. While the stones themselves aren't counted, the gold base is solid and valuers recognise the quality.
Temple jewellery Traditional temple jewellery — necklaces, armlets, waistbands — is typically crafted in 22K or 24K gold. The designs are minimal by structure, meaning less alloy mixing and more gold per gram.
Want to know how to get the best loan against gold? Read more on the best loan against gold — schemes offered by Shriram Finance.
Reasons Why Some Ornaments Return Lower Loan Values
Not every piece in your collection will be a strong pledge. Here's what reduces per-gram value:
- Studded jewellery: Diamonds, rubies, emeralds all get excluded from the net weight calculation. A beautiful diamond ring might have 8 grams of 18K gold and 5 grams of stones. The loan is calculated on the gold portion alone.
- Antique and filigree jewellery: These often use lower purity gold (below 18 K) and intricate designs that increase the proportion of non-gold work. Purity verification can also be harder without clear hallmarking.
- Oxidised jewellery: The blackening process doesn't affect gold content, but lenders sometimes approach these pieces with caution around purity verification.
- 18K contemporary pieces: Fashion jewellery in 18 K contains 75% gold and 25% alloy. The alloy doesn't count. Per gram, you'll consistently get less than you would with 22 or 24K pieces.
If you’re curious how much loan your gold is eligible for, use the Shriram Gold Loan Calculator to calculate.
How Gold Valuation Works at Shriram Finance
The valuation process at a Shriram Finance branch is systematic. A trained valuer handles the following:
- Hallmark verification — Confirms the stated purity on the ornament.
- Gross weight — All pledged pieces are weighed together.
- Net gold weight — Stones, clasps, and non-gold elements are excluded to arrive at the actual gold weight.
- Market-rate application — The current day's gold rate for that specific K is applied to the net weight.
- LTV calculation — Shriram Gold Loan offers up to 80%* of this assessed value as your loan amount.
To understand LTV further, read our blog on Understanding the Loan-to-Value (LTV) ratio in gold loans from an NBFC.
One thing borrowers tend to overlook: get your jewellery hallmarked before pledging. Bureau of Indian Standards (BIS) hallmarking confirms purity, speeds up the valuation process, and gives the valuer confidence in the assessed figure.
Without hallmarking, you may get a conservative purity estimate and this could potentially reduce your loan eligibility.
Want to know the eligibility criteria for Shriram Gold Loan;explore Shriram Gold Loan eligibility criteria and apply online.
FAQs
Which purity level fetches the highest gold loan value per gram?
24K gold (99.9% pure) returns the highest per-gram value because it has no alloy content. 22K gold (91.7% purity) is the next strongest, and the most common form of jewellery pledged for gold loans.
Does studded jewellery get a lower loan value?
Yes. Diamonds and gemstones are excluded from the gold weight calculation. Only the gold content of a studded piece is assessed. The heavier the stone component relative to the gold, the lower the per-gram loan value.
What purity does Shriram Finance accept for gold loans?
Shriram Finance accepts gold ornaments from 18 K to 22K for gold loans. Gemstones embedded in the jewellery are not counted towards the loan amount.
Does hallmarking affect the loan amount I get?
Hallmarking confirms purity. A hallmarked ornament is assessed with greater certainty, and valuers don't need to apply a conservative discount. In practice, properly hallmarked jewellery tends to return the full assessed value for its K level.
Can I pledge old antique jewellery for a Shriram Gold Loan?
Yes, but the loan amount depends on the purity and net gold weight of the piece. If the jewellery is not hallmarked, the valuer will assess purity through other means, which may result in a conservative estimate.